Company F has $1,000 in the book value of equity at the end of year 0. F pays 60% of earnings as dividends. ROE is 12%. F is a mature firm and expects a stable growth from year 1 in perpetuity. Cost of equity is 12%. Estimate the value of equity per share at the end of year 0.  

Answer rating: 100% (QA)

To estimate the value of equity per share at the end of year O for Company F we can use the Gordon G... View the full answer